Management Information System

Initial concept is to process data from the organisation and present it in the form of reports. Gives information through data analysis. Uses the concept of management control in its designs. It is individual oriented and a blend of principles and theories. Interacts with both internal and external environment of the business.

Art of getting things done. Functions of a manager: Planning Organising Staffing Directing Controlling

Information

Data that is processed and presented in the form which assists decision making. Processing Information

Data

Set of elements join together to achieve a common objective. Elements are interrelated and interconnected. Composed of other sub systems. Two types:
a) Open system b) Closed system

A system which provides information support for decision making in the organisation. System should take care of: Handling voluminous data. Quick search and retrieval. Mass storage. Confirmation of the validity of data and transaction. Fulfilling the changing needs of the information.

MIS has borrowed its concepts from large no. of disciplines like accounting ,computers etc. It has both physical and information system. It is neither termed as pure science nor an art, rather combination of both. Its scope lies in structured and unstructured type of information. Internet and computers have further increased the scope of MIS.

System approach Management oriented Need based Exception based Future oriented Integrated Common data flows Long term planning Sub system concept Central database

Source

Data capture

Processing

Storage of data

Retrieval

Dissemination

Data Capturing : internal and external sources Processing of data : converted into information required Storage of Information : for future use Retrieval of Information: as and when required Dissemination : The finished product is disseminated

It is properly planned ,analyzed ,designed and maintained to provide timely ,reliable and useful information. It enables management to take speedy and rational decisions. Important for managers because of 2 main challenges:
a) Because of liberalization and globalization: competition is not local but global and it requires quick decisions. b) Information is doubling with time and manager has to process voluminous data.

 It cannot replace managerial judgment. Cannot provide readymade information. Not have enough flexibility to expand its quality. Less effectiveness due to change in top management organisational structure.

Limitations:

Set of process that allows companies to more information for their business operations. Certain type of data can be processed quickly and more accurately than employees. Software application can be used to generate reports. Allows companies to make automatic the vertical business function.

Empirical or case approach Group behavior approach Cooperative social system approach Interpersonal behavior approach Systems Socio technical system Mathematical system Contingency approach Operational approach Decision theory

Steps in management Planning Organisation

Decision A selection from various alternatives-strategies ,resources , methods etc. A selection of a combination out of several combinations of the goals , people , resources etc

Staffing
Directing Coordinating Controlling

Providing a proper manpower complement.

Choosing a method from various methods of directing the efforts in the organisation. Choice of tools and techniques for coordinating the efforts for optimum results. A selection of the exceptional conditions and decision guidelines.

Negandhi Estafen provides a good model for

the analysis of management effectiveness. Model puts a lot of emphasis on the management philosophy and environmental factors which leads to management effectiveness. Environmental factors provide the opportunity to survive and grow while management philosophies sets the guidelines for deciding the management practices.

The process of management requires a lot of information for execution of the plan. This requirement arises on account of the fact that in each step of management a variety of decisions are taken to correct the course of development. The decisions are promoted due to the feedback given by the control system. Control of overall performance is made possible by way of budget summaries & reports.

Thus if effective management system is to be assured , it has to rest on business information and if efficient information system is to be provided ,it calls for a system with the goals of generating management information.
MIS should support management in terms of basic information at corporate level.